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tv   The Willis Report  FOX Business  December 20, 2012 6:00pm-7:00pm EST

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melissa: at inky fit in perfectly. >> killing those dogs. >> if he wins nobody cares. and we live in the country of rehabilitation, second chances. it's enough already. >> let's be real. melissa: the end of the world is coming. the end of the world. a scale of, you know, 1-money, the you think this will be the end of the world? >> no. that's all the "money" we have for you today. we will see you back here tomorrow. "the willis report" is coming up next. ♪ gerri: hello, everybody. i'm gerri willis. we begin with breaking news, democrats attempting to kill a
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measure sponsored by republicans that would shield the defense department from huge spending cuts. meanwhile in just 90 minutes, the house will start voting on at least one bill from republicans. that is the big one. their plan the it joining me now, peter barnes in a fox business senior washington correspondent with the very latest details. how close will this be? >> the vote on that tax bill, the one that would raise taxes on people making more than million dollars a year, they are still working on getting the republican leader, the speaker still working on getting enough votes to get that to pass later tonight. we expect that around 8:00. as one price for votes, right now than house republicans have also got a bill on the floor which would impose new spending cuts. what it would be technically is it would replace the sequester, get rid of those big cuts in defense spending.
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replace that with about $300 billion in new spending cuts over ten years. some republicans want to be able to say they voted for spending cuts before they even consider voting for a tax increase. they're debating the right now on the floor, the spending cut bill. take a listen. >> we don't just have a fiscal clef. we have of fiscal abyss in front of us, and that is at debt crisis that is on our horizon. failure to address this debt crisis means not just 47 percent of americans, but every american gets hurt. >> we are engaged in the house on this fllor today in what has become a ridiculous political stance which will actually take us much closer as a country to going over the fiscal cliff. >> the ranking member at the top democrat on the budget committee speaking right now as well
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managing this for the democrats. what will happen is, there will be a vote on the spending cut bill and then that is likely to pass. then there will be something called a motion to recommit, which is a procedural effort to kill the bill that they just passed, and that is expected from the democrats, there will raise a point of order and that is expected to fail. it's in the weeds, but it's important stuff, technically procedurally important. gerri: what kind of cuts republicans are suggesting? >> a hundred billion starting and january 1st 2013. half of that coming from the fans. the republican substitute would actually take that away and post some cuts on defense spending but then also require unspecified cuts over the next ten years that congress would have to go back and approved
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next year, so the instructions to cut more spending next year. gerri: have never seen so much posing in my entire life. thank you, and i hope that if you have anything during the hour you will let us know. i appreciate your time. >> okay. we will. gerri: don't forget to catch coverage of the house vote tonight. hosted by our very on neil cavuto starting at 8:00 p.m. eastern time. all right. the house may be working its way to a resolution, but washington is at an impasse over how to avert 90 percent of americans taxes from going up december 301st. with more on this, chief economist for vhs to micros could tiaras, former commerce secretary, and john fund, a columnist for the national review. welcome. great to have you here on this important evening. we were talking in the break just a moment ago in you were saying it's congress is the grand stealing christmas.
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>> we should have handled this month picks to five months ago. the senate has just left town for christmas. they have not passed a budget in three years. here we have majority leader reid say we're not doing anything. the only bill that will pass the said bill. now, the house has now not covered itself in glory either, but at least their is a proposal on the table. beyond irresponsible. believe me. if middle-class taxes go up for everyone on january 1st level really bad first christmas. gerri: high-tech to allow the democrats in washington and he was telling me, look, if he is not high enough for these two sides to get together, let's take for the republicans, democrats, some kind of common ground, resolution to agree to
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something. >> it will probably take december the 301st midnight. and anybody who wants to show that there really trying hard, one of the reasons we probably don't have a deal today is because it's too early. the problem is that when we get a deal it will probably be incomplete. where these cuts coming from. it's easy to raise taxes. but this isn't the first time that cats have been promised and not delivered. it's not something that washington does well. that's the big concern. gerri: you're right about that. what's at stake here for the american people. >> a lot depends on how long we go off the cliff. if we are off the cliff for a week it's not going to really hurt things that much. if we are off for a month to, then i think that's a recession scenario for the u.s. economy because those cuts and tax increases could have a big effect. we figure about 3% of gdp is enough to push the economy into
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recession. a lot depends on how long we're off. gerri: you know what i wonder about, it is not just what is happening to taxes, and it is not just what is happening said amt and all of the other capital gains except representative. it is the fact that washington is broken. i think that makes a lot of decisions for business people out there. starting to make decisions like maybe a leave the country. maybe all scale back my business. maybe i've won't hire anybody. where is the net impact on american business? >> the story of the last three or four years among the weakest recovery we have ever seen is uncertainty, people not knowing what the future's going to hold, and this this book with is the ultimate uncertainty. i think we made tip into recession even if the fiscal cliff is a very short duration. what we have to do is recognize, we are all americans. we have to be competitive. it's time to have a big tax reform.
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let's set the stage for not only valet to reagan boom, but the clinton boom years. excuses won't work. i think congress will finally get to the point where they have exhausted possibilities, and that is where we always know, we end up with one thing to do. the optimistic scenario. unfortunately, they will try everything else that is wrong. gerri: do you agree that it's all about tax reform and that is what this economy needs? >> there is no questton that we need tax reform. we have the most arcane taxes probably in the world. tax cut that is 160,000 pages long. that is ridiculous. i agree that tax reform is sorely needed, but we also need intel met reform. no question. that is the ticking time bomb that nobody wants to really talk about. and so it is a little bit of both. you need both of those, and you need long term. we never felt that they had enough time between the election
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and the end of the year to really do all that. so our best guess even now is that they will do something stop-gap and then come back and deal with it probably in the next congress. gerri: i was going to ask you. i'm making this point. if congress was working for me, if they were my employees of the fire everyone of them. >> i cannot imagine this ceo of this country that goes one year without a budget. we have been without a budget for three years, and it's all about the day today. no one is talking about where we going. entitlements are 60 percent of the budget, and a lot of these entitlements, medicare is not that old. it has only been around since 1965. where is it going to be? -here are we taking the country? why this obsession on increasing taxes. 1 percent, the infamous 1%, 26 percent of the taxes,
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20 percent, the top 20% pay 70 percent of texas. we don't have a taxing problem. why should we continue to tax the american so that government can continue to be, you know, inefficient and wasteful. gerri: the only taxing problem we have is have americans don't pay taxes. >> a very big program. gerri: we are going to pause here for a moment right now. stick around. they're all coming back after the break, and we will talk more about this breaking news story. let me know. write me in e-mail. >> coming up on "the willis report," more exports of natural gas boost the economy? find out whether top energy republican is saying don't leap of the fiscal cliff just yet next. and thank heavens are pancakes are safe. the sticky bandits and the maple syrup height finally met their dim. the unbelievable details.
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♪ gerri: all right. eleven days is separating as for more than 500 million in tax hikes, and the people here to my left, you are probably seeing when the turnaround, the voting right now on whether to kill the gop spending production bill. that's what's going on. we will be following those numbers for the our. also falling, what will it take for washington to reach some kind of deal? back with me now, i a just and a former commerce secretary, carlos could hear is, and john fine from the national review. i want to talk a little bit about the plan. they make permanent current tax rates for people making less than a million a year, capital gains dividend rates, they get to push levels.
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right now they don't go up. the permanent patch, a very big deal for many americans, and the estate tax of 35% instead of ratcheting higher. is this an adequate plan? >> at least it's a plan that is put on the table and people are willing to take a risk of putting it to a vote. the president has already moved from taxing everyone over 200 to 2,000 year-400000 year. the senate bill, to 50. raising dividend taxes. state tax 35-45 percent, those are job killers. so this is not a perfect plan, but at least someone has the guts to vote on it. the senate went home. gerri: could you live with the gop plan? >> i think the speaker has come forward with a good, safe plan. the president talks about millionaires. what is the definition?
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a guess as someone who makes a million dollars a year. a family of four, i don't think they feel wealthy. so this notion of $200,000 a sort of a cut of, it's worrisome. it just is very ideological. and this is all feeling very ideological, and it is not working. poverty is up, our labour participation rate is down. we cannot grow with a shrinking labor force. we are in trouble now. forget about what is going to happen with the fiscal clef. gerri: do you agree? >> i think this is a reasonable plan. i have no problem with the reasonableness of the plan. there is a fundamental problem. it is not the votes that needs to go through. you have to come back and renegotiate. again, reasonable plan, no chance of getting through. so where are we? we have to keep coming back to this thing. the other issue i have with it
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is it really does not address the entitlement problem. we have to do a lot more on the entitlement side, especially medicare. it's a long way from a true solution year. gerri: john. >> the president originally talked about putting medicare eligibility on the table. he has now said that is off the table. it is not a helpful negotiating tactic. the president, what worries me is the me want to go off the fiscal cliff command of tell you why. in the 2008 campaign he was presented with evidence that the capital gains tax cuts brings in more revenue. more actual revenue. that's not good enough. it's not fair, equitable. i think the president is willing to take as yet on the economy because he wants the tax system that is more equitable, more redistributionist, and that think he wants all the revenue from the middle-class taxes going up so he can then play those christmas santa claus and redistribute part of it back to the country. gerri: okay. hang on with that thought. we are watching voting in the
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house of representatives tonight on a democratic measure to kill the gop spending reduction act. this going on right now as we come closer every single day to the disco clef. the president wants to draw this over the cliff. do you believe that? >> well, i don't think he is demonstrating that this is as big of a concern as it should be he is taking it very lightly. it is impacting our economy. investors are looking at this. the number of companies, foreign companies listing in new york is down. people don't want to list new york with all this uncertainty and regulations. ipos are down, small business start-ups are down. so the president needs to level with the american people a
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tremendously insurmountable entitlement problem unless we do something structural. that is what he should be doing, and that is what it's all about. right now it's all about taxes. gerri: no one is doing that right now. a last word here. everybody wants to have something bigger done. it doesn't seem possible right now. do you think ultimately congress and the white house will find some common ground? >> i think they will. they always do. again, one of our other guests has talked to me about that churchill "which is america has this inevitable way of doing the right thing. how this we will do something right. gerri: very good point. thank you so much.
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thank you for coming on tonight. appreciate your time. have a great holiday. still to come, reaction to the takeover of the nyse, and a huge highest involving one of the world's most valuable commodities, how this sticky bandits almost got away with it. ♪
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gerri: the case of the missing maple syrup is solved. thieves foiled in their efforts. pancake fans rejoice in 60 seconds.
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gerri: the current processes system cornering a market is considered a high-stakes drive. in canada it's a pancake crime. the story you're about to years through. this week police in quebec arrested three men in connection with a brazen highest at the province's most prized product, high-grade maple syrup. that's right. the simple bottle of maple syrup that by the grocery store is not just a sugar high but part of a highly lucrative yet little notice commodities market that canadians dominated by opec domination of the world oil markets. monopolizing the maple syrup market producing as much as 70 percent of the high-value commodity. since 1999, the province use the marketing system that set strict quotas for producers and requires them to sell to a federation in the spring of 2011 a critical change said that peace plan in motion.
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a good harvest meant maple syrup production shares spiked. so much protection the federation was forced to add a warehouse, its third, to accommodate overflow. into the seven criminals. hoping to score the perfect heist, their goal, to steal as much as their sticky hands can handle from the strategic maple reserved. that is what it's really called. first, the ridge to the portion of the new warehouse which allowed them to drive large trucks into the building. then they began emptying the barrels of maple syrup, refilling them with water. they refilled that serve on the open market setting themselves up as legitimate maple syrup dealers and because kershaw restores don't use a bar code on serb boss, they were able to sell for full price. crazy. over time they helped themselves to 6 million pounds of serb. when police stumbled love you empty barrels a crime was amassed. today they are behind bars,
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brought to justice by police to follow their maple the trail. i have one word for these perpetrators. saps. coming up next, the 200 year-old new york stock exchange is taken over. what that means for you and your money. reaction from your home. copd makes it hard to breathe,
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♪ >> from our fox business studios in new york, here again is gerri willis. gerri: well, tonight and big weather story, taking heavy hit from the major storm moving
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east. fox news chief meteorologist joins us with the latest. >> first snow they have vetted chicago and 290 days that broke the record for the longest stretch without snow. the latest in the season ever not seen snow and it's all about to change. a big storm system. so dry. major drought. some areas saw over a foot of snow which ultimately will be a good thing. raining so far. take a look at this. these last couple frames. about to move and. we'll see 1-3 inches of snow. areas to the north the scene of 18 inches apart krauss of wisconsin. very wendy, and because of that there have been all kinds a blizzard warnings across parts of the planes. even though the snow has stopped, the wind is still over 50 miles-per-hour. blowing around whenever snow is still left on the ground. i'll have to watch that.
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as severe side to this storm. a tornado watch about to expire. when tornado warning still right now across areas just to the south. right around that georgia florida border. we're going to continue to see that threat of severe weather. more rain. the snow in toward northern california. the area they got socked. the next three to four days we may see another chances of rain across parts of northern california. gerri: could not have done better than this for a holiday week. >> well, i know. the bright side. ski resorts. gerri: thank you for that. appreciate your time. meanwhile, has charlie gasparino
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with the very first. the atlanta based intercontinental exchange which is an electronic stock exchange will buy the 200 year-old new york stock exchange in a multibillion-dollar deal. that is if it gets approved by federal regulators would that mean for individual investors? here with more. bagram back to the show -- tainf individual investors are buying individual stocks or mutual funds. >> i don't think for individuals, jerry, the intercontinental exchange in the futures world has done a very good job of being retail customer friendly. so i don't look for much change in that regard with regard to the new york stock exchange. gerri: to you believe that regulators will approve this deal? >> section 15. it's really just the antitrust
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issue that relates to the sherman act and the clayton act. and so i don't see a problem with that. the department of justice may want to have all little looks he added. antitrust division looks at these things, but i would not anticipate any problems, and i wish the intercontinental exchange, all the success. gerri: we were talking about this last night with charlie gasparino as you reported, and one of the interesting things he was making is that here you have a 200 year-old anti very well regarded in this country seen as a symbol, such a symbolic presence at the heart of capitalism now being taken over by an entity that is entirely electronic. what kind of impact might that have? >> two things. one, the old new york board of trade, the intercontinental exchange took that over years ago, and they kept a floor open really and sell about two months ago. so they kept it all open a lot longer than people thought there
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would. but i have spoken with the executives at the intercontinental exchange. they understand the iconic importance of the new york stock exchange floor, the floor experience, and so of course we are all moving forward and technology. most of the jury will be done through technology, and that adds transparency which we talked about before. i think they understand very well the importance of having the floor there. i certainly cannot speak for them for how long it will be open, but i don't think it's going to close any time since. gerri: do you think there will eventually shut it down? at the end of the day its really an extra layer of cost. i'm just talking dollars and sense. >> i think their is a lot of value that may not be seen in the balance sheets. you know, that television is there a lot of the time. it's an experience different from the nasdaq experience which, as you know, is entirely electronic. at the devaluate. ultimately valued have to keep
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it open. we'll have to see, but i know that they valued the iconic importance of the new york stock exchange floor. gerri: it looks like nike shares have gone up. a public company, and not just a conglomeration of men and women coming together to trade stocks. they have to put their best foot forward and make some profit. you said something interesting. without dodd-frank, the major legislation reforming the banking industry this deal would never have happened. >> of for all of the sort of catcalls and crying as a river about dodd-frank, and there have been some real reasons to do that, but ultimately i think it is going to make your financial sector, the exchanges as well as a lot of the biggest banks and smaller banks more competitive internationally, and that scene in already. it may be sort of an odd thing for people to think about, but we are going to have the most efficient, effective markets in the world, and i see people coming to me all the time which new ideas and how they're doing
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things differently. i think this purchase by the intercontinental exchange of the new york stock exchange's one sort of outcome. it's going to be get ultimately. not just for markets, not for traders, but for consumers. gerri: that's what we care about. thank you for coming on tonight. appreciate your time. have a great holiday if i don't see you. >> youtube. take care of. gerri: thank you. the end of the world, at least that's what some are saying. that is what the-predicted. it's i will give you my "2 cents more" on this theory. in case you are a survivalist, we thought we would help you out with the top five foods that will survive armageddon. number five, twinkies. since hostess has posted stores it may be hard to find , and it's actually not a bad thing since it is all roomer. they do last almost a month. member for, processed cheese.
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since there is not much season those symbols, it will likely last awhile. number three, spam. if you're hoping to live long after the apocalypse maybe should avoid the pink brick. number two, and jell-o. you can watch it jiggle and see it wiggle after the world goes up in smoke. the number one food, listen to this, nondairy creamer. since no is obviously not an option you can get a morning lot take, but it may not taste as good. one word of warning, nondairy creamer is highly flammable. don't let a match near it. we want to know what you think. to you think the world will end tomorrow? yes, no? log on to and vote on the right hand side of the screen allows said the results of the end of tonight's show . the scary warning from the irs.
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there is debate. al asked a senator. you'll want to see that next. ♪
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♪ gerri: our country is sitting on a gold mine of natural gas, and the federal government is now considering tapping these reserves and making big profits by sending them overseas. with more on what these exports could mean for our economy, senator lee some rakowski of alaska, ranking republican on the senate energy and natural resources committee. welcome to the show. great to have you here. this new study from the energy department says that this could mean, if we export that gas up to 47 billion in 2020 and exports. tell me more about what this could mean for our economy and for your state, frankly. >> well, think about it from a balance of trade perspective. when the be nice to be on the positive side of the equation.
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also, from that job perspective, what we're seeing, natural-gas exploration around the country. we are realizing that we have states that would never have considered themselves to be in energy producing state. yet they are producing now, creating jobs. it is a net benefit to the economy, and that is what this energy report clearly has established. and economic benefits. gerri: it's interesting. there are our eo detractors including congressman edward markey on the house natural resources committee. he says exporting natural gas will increase prices for regular americans, may be as much as at 30%. do you agree? >> well, there has been of fair amount of discussion about whether or not exports could actually push up that price to the individual consumer. but i think in fairness what we need to understand is we're talking about an increase in
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times, not dollars which is important to put into context. think about coal. we have been exporting coal from thii country for decades. that has not increased the price of coal to consumers. so while there is fairness to the concern that we may see a slight increase, i think you need to put it into perspective. if there is incentive for producers to produce more here, not only do we see the economic benefits from the job, but as there is more produced here, that's going to work to reduce the overall cost to the consumer gerri: of tell you what my concern with this is, and look. at the end of the day every president since eisenhower, i think, as talked about the idea of the u.s. being energy independent. you don't depend on anybody. does selling our energy, doesn't that put us in a worse position?
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these and the energy independence rather than holding onto it and letting americans use this energy right here now? >> it would be part of the arguments if we had severe limitations on how much natural gas we have here in this country. we are now calling it the saudia arabia of natural gas in terms of what we are finding here in this country. this is just in the lower 48, we're not even talking about the reserves that we have up in alaska which are enormous in terms of the conventional natural gas as well as our unconventional, like our methane hydrates. the potential for us here in this country is huge, but we need to be allowed to access it. gerri: when can we expect a decision and are you sure it's going to be economical for the u.s. to export natural gas? >> your second question really
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is one that we need to be looking at. there is a lot of human cry right now that all of these folks that are looking to export our natural gas, in fairness, 15 applications before the department of energy. but the fact is, getting to doe with an application is one thing. it's clearly another hurdle to get through the federal energy regulatory commission where you have to have your contracts lined up for sale. you have to -- but the cost, the cost to actually export really is the factor that people are not looking critically at. it is billions, billions of dollars to put a whole package together for exports. so i think people need to look at this a little more critically and not just draw quick conclusions that we will be spending all of our natural gas overseas. gerri: interesting.
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i have to ask you one other question. as you well know, there will be a record 20 women serving in the senate. some people believe that this will miraculously changed the tone of debate in washington. do you agree? >> i think that more women doing good things is always a positive. so we will see. i'm optimistic that having more female voices in the congress is a positive. gerri: thank you for coming on. great to talk to you. appreciate your time. >> thank you. all right. gerri: breaking news. the house has passed the spending reduction assets. republicans that would reduce defense spending cuts. the sequester replacement bill. also called the more than 20 republicans voted against it. there will move on to other votes and start the debate. we will continue to cover this all night long.
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still to come, my "2 cents more" on the end of the world as we know when and, well above fiscal clef be the ultimate bridge before christmas? the irs thinks so. here with one agency is a warning next.
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gerri: the taxpayers may have to pay for it. details.
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gerri: the irs. the new warning for taxpayers tonight. get this. 100 million of us, 100 million taxpayers out of 150 million total me be able to the other file taxes or they will see there refunds delayed. that is your money. managing director of wealth held financial planning this year. what gives? >> everyone is talking about tax rates. the sentiment has not be determined. that when a way as of 2011. if he goes back to where was there will be almost 30 million people subject to amt. gerri: is that what people will be able to file? >> the problem is, the irs has not reprogram their systems. right now they're programmed to account for inflation and the exemption continuing to increase as we have, but if they don't do
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that in this goes back to where was the programming we will have to be redone and more people will be subject. more people -- more people will not be able to file. delays in refund. gerri: can i tell you how hard this is to take? we have all these unanswered questions about what is going to happen with taxes. the idea that the government can hold my money back for me because their own intransigence and errors and problems and granted, it's not the irs by congress and the white house. >> it makes you angry as a practitioner because we can't get solid answers to clients. and that's the that the company's logo. gerri: a little bit about this.
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people are really concerned right now about those taxes. there are red flags. mistakes you not want to make your going to get audited. things that will send you down that path. first of them of failing to report income. >> something you don't want to do. the thing is different now, computer programs of gotten better. a matching system. you better be reporting what's on it. gerri: they know. >> they absolutely no. even if he think it's wrong what you need to do is go back to the source, the issuer and get a corrected one and make sure the corrected one gets sent to the irs. otherwise you will be on the fall like i was today. gerri: another one, a really generous, and a lot of charitable deductions. even if you do illegitimately, you could be in trouble. >> absolutely. a lot of matching going on in the system as well as lack of proportionality.
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he charitable deductions, it's kind of a red flag. with charitable deductions you want to make sure you have documentation, but you also want to make sure that if it's over $500 untold charitable deductions, you file form 8283. u.s. that out. the item you're giving is over $5,000 you need to get an appraiser and have an appraisal. gerri: check here and trickier when you're talking about giving cards or whatever . >> i'm referencing schedules c and your tax return because that is where folks right of all lot. that is where it gets a little messy. there is a blurred line between what's personal and what is business. we'll like to be a little aggressive, but the fact is if it is relevant to travel, car expenses, document those things, document what the purpose of the meeting was, the purpose of the meal. keep receipts over $75. again, if it becomes egregious and you're taking more and more deductions and the income is looking smaller and smaller relative to the type of business and industry, they know this.
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gerri: they have always had red flags. your last one is miscellaneous income. what do you mean by that? >> miscellaneous income, what i'm thinking about our gains, and the gain that is subject to tax which may be at a higher rate as well as the additional net investment income tax, you might find that for basis, it's not reported. you might find that you up the basis of that year gain is smaller and by doing so you have less tax due on the gain because you have a higher base, you're paid more. so your showing less income. that is wet think will be something because it forms the file with schedule b. the reality is you have to document what basis this. your company doesn't provide that to you even put it whenever.
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you better have some backup. gerri: you need the paperwork. you need to be able to prove it, or you may lose it. thank you for coming on. appreciate your time. >> you're welcome. gerri: we'll be right back. ♪ [ male announcer ] at scottrade, we believe the mo you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the infmation you want when you need it. it's anothereason more investors are saying... [ all ] i'm with scottrade.
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[sigh] it feels good to help people save... with great discounts like safe driver, multicar, and multipolicy. so call me today. you'll be glad you did. cannonbox! [splash!] gerri: and finally tonight, you know it means the world. using the ancient mayan calendar the world will end tomorrow. before you turn off the tv and go to her bunker, this has been debunked by scholars and nasa unless that is not stopping everybody from preparing for the rapture. people are stocking up on food, on water, emergency supplies to build their very own underground bunkers. those who don't want to go underground, bars around the country are throwing doomsday eve


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